Why do we need a Freight Audit?

What is a Freight Audit?

Freight auditing is typically provided by an external audit company.  They carefully inspect the carrier invoices and look out for all the inaccuracies in the carrier invoices. Inaccuracies can include billing errors, incorrectly classified shipments, unapplied tariff weight breaks.

This audit will help a company to prevent over-billing, negotiate future shipping rates and choose better transportation strategies along with the most efficient carriers.

Nowadays freight rates and freight pricing in the logistics industry are becoming increasingly complex, and carriers make innumerable mistakes and also fail to meet service level agreements. And thus shippers use freight auditing as a tool. This tool ensures that the shippers pay carriers only after determining that the freight invoices are 100 % accurate and precise.

Rates in the LTL industry are very complex. They are calculated by a range of factors which include mileage, cost of diesel, product type, pickup, and delivery fees. Some of these fees and charges are negotiated with the shipper. Carriers can always add new charges or sometimes they increase existing charges also. For this reason, it is very difficult to track a company’s freight bills to ensure that they are accurate.

Carrier Formats and Error Frequency

Making matters more difficult is the fact that a company almost certainly uses more than one carrier, and each carrier’s invoices are different from one another and they all use different formats. This task becomes challenging when there are potentially hundreds and thousands of items to ship every month. And due to the large volumes of shipments, many errors go unnoticed and undetected.

One out of every four freight bills contains an error that could affect the company’s finances. Manual auditing and freight payment are time-consuming and often require additional administrative staff and time. For companies who lack these resources, they can save time and money by outsourcing freight Audit to an external audit company who has expertise in capturing all the errors and also using the auditing software.

Freight Audit Software

Examination of freight bills is a business process. Freight bill’s duplicates and accuracy are adjusted and verified. Now the shipper can stop wasting the time of their Accounts Payable department on the grueling, time-sensitive process of auditing, while also bringing in extra money at the same time. The shipping company has to pay the cost when there are overpayments. There are also other benefits like actionable data that can be used to negotiate better rates with the carriers.

Freight Invoice

Carriers submit an invoice to the customer or an external audit company, this invoice is the freight bill. Audit companies approach the respective carrier when there are errors in the shipper’s invoice. They suggest the carriers to correct and generate a new invoice. Here at AudIntel, as a leading freight audit provider, we ensure that shippers are not overcharging for their freight services. For example, in the shipping world, overpayments occur far too often. Carriers like FedEx freight/UPS freight delivers an average of 9 million packages in 220 countries every day. Hence the mistakes are inevitable. As a result, the freight audit service ensures that your actual freight invoice matches the quote.

AudIntel’s role in freight audit 

We at AudIntel, do many explicit audit checks on various types of freight invoices. This makes sure that even the smallest of discrepancies are captured. This in turn saves a good share of money for the shippers. And also provide data insights showcasing trends for revenue, shipments, accessorials, carriers, etc. For further queries, please visit Audintel or mail to


How late shipments could impact shipper’s KPIs


Late shipments are something that shippers should be paying attention to. Shippers have to take necessary action steps to improve their KPIs and cut down costs.

What will you know from this article

  • An overall insight into how to identify late shipments and the need for identification, through market research.
  • Financial impact on shipment costs.
  • How to submit claims to carriers.
  • The role of audit firms in the identification and submitting claims through a variety of software tools.

How can Audit firms help the shippers

We will discuss the need for shippers to make a strategic decision whether to go with audit firms or not. Lastly, we shall talk about the audit firm’s add-on services offered, compensation models, and how firms deploy security measures to protect the confidentiality of sensitive customer information.

We hope this article surely helps you to take your current business to the next level just by implementing some of the best practices discussed in detail below.

Let’s deep dive on, what are late shipments and how would you identify a late package?

In the current context even if we try to know we cannot find out if the package is delivered on time. Most of the time, it is very difficult to identify, and this is where the tools come into the picture. The best-in-class tools produce the best result.

What is the need to identify late packages?

  • For explanation purpose, we would like to categorize the reasons into two: First and foremost is the performance of a company depending on how well they are satisfying their customers. Customer satisfaction depends on a better price, quality product, and product on-time delivery. On-time delivery plays a pivotal role in the success of a company. But identifying the late packages is one of the KPI for the company’s growth.
  • The second reason is the huge unimaginable revenue potential. Most of the carriers offer GSR (Guaranteed Service Refunds) for shipments not delivered on time. If in case they don’t fulfill the promise, the carrier would offer a refund on shipping charges. However, they just don’t refund the money just like that. There is a process built around for claiming for refunds, on which this article is built upon.

Submitting Claims for late shipments:

The main catch for submitting the claims is, these usually have to be submitted within 15 calendar days of product delivery or invoice date. Usually, most companies simply don’t have time to pursue these. The majority of shippers don’t even realize that they are leaving money on the table. This is because any shipment if delivered even a minute late to committed time is considered late. The shipper is entitled to a refund for such late shipments. Research reveals that Late shipments recoveries can recoup up to 3% of shipper’s costs. However, handling these claim submissions is a little time-consuming. It involves identifying the late packages, process them in the system and submit for claims. This is where audit/recovery firms come into the picture.

Role of Audit firms :

Audit firms analyze each package, identify late packages using their software tool, and submit claims on the behalf of the shipper. They just charge a contingency fee based on the savings made. The percentage of recoveries generated by shippers versus audit firms varies significantly as audit firms have processes in place, complete domain knowledge, tools in place, and manpower to implement. The higher percentage of credit received depends on the proficiency of the audit firm.

How Audintel can help you :

AUDINTEL is a one-stop solution that delivers a secure small parcel audit platform by using proprietary Artificial Intelligence (AI) to drive predictive analytics, hosted by Amazon Web Services (AWS), the best in class cloud hosting provider. AUDINTEL’s 36-point parcel audit is the most proficient auditing process currently available, and its ability to maximize credits from your carriers is very unique. AUDINTEL’s small parcel audit disputes all eligible late deliveries and any other mischarges tied to the package. For further queries, please reach out to

Shipper’s decision-making evaluation:

Depending on the volume of shipments, a shipper can approach the audit firm for helping them in recovering the percentage of their costs. After thorough market research, the shipper should be finalizing the company. It constitutes a team with an immense knowledge base and has shown proven results. Audintel has a fully automated monitoring system and has security controls in place. The client’s shipping data consists of customer names and addresses and hence should be kept confidential.

On the same lines, Shippers should also be checking on add-on services offered by the audit firms to justify the cut offered. Add-on services may include rate audit (whether the carrier is applying the correct rate and is not charging unnecessary surcharges), Audit platform access, reporting, and maintenance. The contracts between shippers and auditors may vary from shipper to shipper. The compensation plan may vary from gain share split/contingency basis to a flat rate per transaction, whichever suits the shipper.


To conclude, customer service is of prime essence, a satisfied client means you are satisfied. Hence, it is highly encouraged for shippers to not sign a waiver on GSR with any carrier. Additionally, you ensure that you get refunds for late deliveries. For further queries, please visit Audintel or mail to